If it’s important to leave a legacy, your drawdown clients are likely to dismiss guaranteed income for life (GIfL). The common perception is that annuities may offer some protection on death, through guaranteed periods or value protection, but over the long term they’re not as effective as other solutions.
The truth is out there…
If it’s important to leave a legacy, your drawdown clients are likely to dismiss guaranteed income for life (GIfL). The common perception is that annuities may offer some protection on death, through guaranteed periods or value protection, but over the long term they’re not as effective as other solutions.
A new report from global actuarial firm, Milliman, suggests the reality might be quite different. For drawdown clients, using a mix of annuities and equities can provide a higher death benefit over the longer term in many cases than the traditional asset mix of equities and bonds.
What’s more, this strategy might also increase income sustainability. In other words, a greater probability of money lasting longer.
That’s not all. If poor market returns mean that your client’s target income failed to last a lifetime, there would still be an income payable under this new approach.
The analysis is fresh and insightful and the outcomes are fascinating. Why not read their report. We’ve also developed a unique calculator using Milliman’s results so you can investigate them yourself.
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Just is a trading name of Just Retirement Limited, Just Retirement Money Limited, Partnership Life Assurance Company Limited and Partnership Home Loans Limited which are subsidiary companies of JRP Group plc. JRP Group plc was formed by the merger between Just Retirement Group and Partnership Assurance Group in 2016. For more details about the JRP Group please visit: www.jrpgroup.com
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